Canon imaging profits drop by nearly 60% in Q3/2019
Nov 1, 2019
Dunja Đuđić
Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, concerts, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.
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Canon recently released its Q3/2019 financial report and the results are once again pretty bad in the imaging division. The trend of declining sales and profits continues, with a 13.9% decrease in sales and a 56.8% decrease in profits compared to the Q3/2018.
At the beginning of this year, Canon predicted a grim future for the camera business. Canon’s president Fujio Mitarai said back then that the digital cameras market could shrink by 50% within the next two years. And it seems that this is happening.
According to the latest financial report, the overall camera sales have declined in the Canon Imaging System. The company notes that this is due to the impact of global market contraction, but they have still seen a growth in the unit sales of mirrorless cameras. However, the overall drop in net sales is decreased by 13.9% compared to the same period last year, while operating profit has declined by 56.8%.
Canon showed a dramatic decline in sales and profits in both Q1 and Q2 of 2019 compared to the same periods in 2018. The Q1 results showed a 23% decline in camera sales and a massive 81% drop in operating profit. In Q2 of 2019, the camera profit dropped 64%. Judging from the latest financial results, the trend continues.
The company isn’t optimistic about the future of its camera business due to a variety of factors. First of all, there’s an expectation of a prolonged trade war between the United States and China. “This is not only impacting China, but also having a rippling effect on surrounding emerging markets of Asia,” Canon writes. “In addition to this, it is unclear what will happen with Brexit or in the Middle East,” which affects the global economy, and certainly Canon isn’t excluded.
While the political factors affect Cano’s business overall, their imaging department suffers for one more reason. A “more severe competitive environment” is, according to Canon, another reason why camera sales have been plummeting during 2019. The company expects approximately 20% overall decrease in total cameras sales in 2019 as compared to the previous year.
CIPA’s reports show that overall camera production has been declining almost constantly since 2010. And naturally, this hits camera companies in terms of profits. The reasons for the decline can be many, starting from global reasons such as political or economic issues. Then, the increased quality of phone cameras certainly has an impact, too, as well as the competition between camera makers. And finally, on a smaller scale, there are individual users who simply don’t need an upgrade and they don’t make purchases. Whatever the main reason may be, Canon’s financial results show that the camera industry is changing fast.
You can get the full financial report and read more on Canon’s website.
Dunja Đuđić
Dunja Djudjic is a multi-talented artist based in Novi Sad, Serbia. With 15 years of experience as a photographer, she specializes in capturing the beauty of nature, travel, concerts, and fine art. In addition to her photography, Dunja also expresses her creativity through writing, embroidery, and jewelry making.
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31 responses to “Canon imaging profits drop by nearly 60% in Q3/2019”
Maybe if they stop crippling their cameras and listen to what professional photographers and YouTubers demand and want in a camera and lenses, maybe they would start seeing a profit in their imaging dept. otherwise they should just shut it down and do what they do best and stick to printers and copiers.
Michael Bray very well said you know what they kinda deserve it with there attitude
David Santoro Exactly, Canon doesn’t listen to the people who actually buy their cameras and lenses…the pro photographers and YouTubers. I have been shooting Nikon for 6 years now and I am excitedly looking forward to buying a D850 and Z6 by the beginning of next year. Their gear checks all the specs I ask for in a camera and lens setup, Nikon and Sony actually listen to the consumers and give us what we want…the only thing they keep fucking up is the variangle touch screen that flips out to the side instead of down or up.
Traditional DSLR become like Dinosaurs on their stuborness in adapting with the times… they keep making cameras like this was 1960…
We live on a permanent Online and instant Connectivity World… i can do all that on my phone but not with my DSLRs…
Marco Peixoto Exactly…what Canon (and Nikon and Sony) need to do is look at what the cellphone companies like Apple, Samsung, Huawei etc…are offering with the cameras on the phones, incorporate alot of it into a mirrorless body as DSLR’s have gone the way of the dinosaurs (even though I still love Nikon DSLR’s) and also listen to what us professional photographers (and YouTuber’s) want and need in a camera and give it to us, then maybe they will all see a profit. Mind you Nikon is doing well (not great mind you) with their mirrorless systems and sales, especially with the launch of new lenses like the new 85 mm F/0..95 NOCT lens, where they are unable to keep up with the demand for it.
Michael Bray your so right im looking at sony myself good luck canon is there own worst enemy
David Santoro Sony makes fantastic cameras and were the first out of the gate with the mirrorless cameras. If I wasn’t so heavily invested in Nikon with lenses, I would consider making the switch. But I have grown to love the sharpness and color of Nikon so I don’t see myself ever switching brands…the only other camera I will own other than Nikon is the DJI Osmo Action. When one of my friends was looking for good cameras for photographing and doing video of the indy wrestling business he is a partner in, the first camera I recomended to him was a Sony then Nikon.
Creating crappy crippled cameras that cost too much doesn’t help either.
The problem is dslr is threatening by mobile phone… They have AI but dslr only had improvement in hardware only…e g mirrorless, need a major breakthrough both in weight, software and great feature that different from mobile phone… Need great third party app e.g snapseed built in to dslr camera… No more only a app a special standatd by the Mfr but allow third party apps… Need collaboration… Need module system, that allow ai, IoT and big data or other stuff to incorporate to it…
I agree and all the camera manufacturers (not just Canon) need to wake up and smell the coffee and start consulting with the cellphone companies to incorporate AI in some fashion into the sensors of their mirrorless bodies, plus give us amazing IBIS in the camera and in lens stabilization…touch screens that actually work and not crippling features like those plus also give us a GOOD variangle flip screen that flips out to the side and not up or down. Those are kinda useless unless you have the camera mounted on a tripod (aka the flip screen on the Nikon Z6) that is my only issue with the Nikon Z series mirrorless cameras. Beyond that I love the system and look forward to buying the Z6 film makers kit, especially once they do the firmware to make it so it can record 12 Bit uncompressed RAW footage via the Atomos Ninja V
Why would we need “AI” in cameras? We don’t need fake “bokeh” when we have real one, and we know how to oversaturate the colors. What can that “AI” do, what we can’t?
create a seamless panorama by just panning the camera.
create a decently rendered HDR scene without fiddling for 30 seconds or having to merge in post.
Michael Bray need to incorporate micro SD card..
Michael Bray we need more innovation if you seem how mobile phone had been moving forward..
I needed this thread so bad this morning
Their problem is marketing to the same people who use iPhones to take the majority of their photos.
That and the useless race to get the most mega pixels.
Listen to the pros in the field and the sales will right themselves for the product.
It might not get them the profit they want, but the business will right-size itself in a couple years.
Exactly!!! Listen to those of us who actually use their products in the field and maybe they will see a change.
AGAIN with this??? Serious BS… anyone who thinks this a Canon-only issue needs to take their head out of their a**…
Viggo Næss nobody said it was a Canon issue only. This was their earnings report and I’m sure the rest will come out over the next few weeks
Cause Canon is the biggest camera manufacturer in the world with 40% of the market share… Their numbers reflects the industry, without saying.
Stop making cameras based on engineer opinions and listen to what photographers want
Waits for the Canon fanboys to come to the defense of their favourite camera manufacturer LOL
Michael Bray What is a Canon fanboy?
Stephen Baumbach someone who thinks Canon makes the greatest cameras in the world and couldn’t be persuaded otherwise, who will defend Canon and their cameras to their deathbed and if anyone says Canon cameras suck in anyway online they will go right on the defensive
Michael Bray There’s no people like that any more. As a Canon user, I can just say I like the Canon system. It works for me just fine. I’m sure they’ll figure something out soon.
I still shoot with my Canon 5D Mark 3, it’s the best they had offer during that time, there was no way I’m going up for pay more for less, I’m still holding on to my 5D, I have a spare and a 7D
Smartphone cameras are getting better and DSLR tech isn’t keeping up, but is still very expensive.
Canon takes too long to meet what the public wants. They keep treading the same water. They also have too many cameras out to keep up and they are all mostly the same.
Lol all the marketing experts
Who cares, buy a camera and take pictures.
Hire group of photographers to be involve in the camera design team. Listen to what photographer want and need.